National disaster relief fund to ease homeowners insurance premiums

The U.S. House passed a bill to create a national fund to cover mega-disasters on Thursday.

The bill, which passed 258-155, will create a fund to help cover disasters of Hurricane Katrina sizes to avoid massive federal bailouts in the future.

This time around, rather than a bailout, bonds will be sold.  The fund will be created and paid for by states that choose to participate through the sale of bonds.

The bill authorizes up to $120 million in federal contributions over six years to set up a “consortium” which will manage the fund

The fund is meant to cover the most costly disasters so that private insurers can provide more afforsable rates to home owners.

You can read more about the disaster relief fund at the Orlando Sentinel.